What is the Homeowner Protection Cap?

The Homeowner Protection Cap puts a limit on how much you’ll owe Point—no matter how much your home increases in value. It’s a safeguard that helps ensure your repayment stays within a predetermined maximum amount, called the capped repayment amount.

This cap is in place for the full 30 years available (unless you have an existing agreement that specifies a 10-year term), but is most likely to apply in the first few years. Why? Because Point starts calculating appreciation from a value below your home’s appraised value.

That means:

• In the early years, your home may appear to have appreciated a lot.

• Much of that increase will be the difference between your home valuation and the appreciation starting value.

• The cap makes sure you’re not overpaying based on that adjustment.

The capped amount is based on a fixed annual rate, compounded monthly. So even if your home’s market value skyrockets soon after you receive the investment, the cap ensures your repayment remains fair and predictable.